OWN A 1/8TH SHARE (6 weeks use a year) IN THIS YACHT FOR JUST £75,000
This syndicate specifically chose the Princess 62 for its four spacious cabins and its high specification, among which is a hand held ‘Yacht-Controller’ remote unit.
One can pilot the yacht from anywhere on board, making single-handed operation simple. This is particularly advantageous if one uses their in house skipper who is available at €250 per day, as he is able to moor the yacht without any guest assistance whatsoever.
One of the owners was so impressed with her when putting the syndicate together in June 2015 that he purchased three 8 weeks shares (£120,000 each) to be able to secure 24 weeks a year on board after having semi-retired. He has now taken-up a new exciting business opportunity, and is offering 6 of his weeks for sale at £75,000.
This syndicate is also Platinum Member of the Fractional Association, giving each shareholder the comfort that it is very well managed, and the Fractional Association’s complete operational criteria are adhered to, offering fully transparent access to accounts and other operational procedures.
The Fractional Association have devised an algorithm that makes the weekly selection process as fair as possible for each individual owner. Every year the order of selection changes so that those who were disadvantaged the previous year are advantaged the following year.
This is how it works: Each person selects a week in rotation. Person 1 chooses one week, then it’s person 2, 3, 4, 5, 6, 7 and 8 all choosing a week at a time in order. This cycle is repeated until all 48 weeks for the year are allocated, (the remaining 4 weeks are retained as maintenance weeks). The following year it’s done in reverse which gives the person who chose 8th the ability to choose 1st instead, and so on. Each year, after the 48 weeks are fully allocated, it is normal that some swapping takes place after the 48 weeks are allocated between owners for those who prefer 2 weeks together for example. The Fractional Association’s website forum for each syndicate has a special section for week swaps or for cancelled, unused weeks which owners trade with one another.
This syndicate has a cross section of owners, some preferring school holiday dates, other keen to avoid them. The owners are also of different European nationality meaning that there is further diversity in date preferences as holiday dates also differ between each nation.
Fractional ownership is a commercial proposition that has been around for many decades but has become ever more popular in recent years. It is a method of ownership where several people can own a share in an expensive asset.
Traditionally, luxury yachts have been owned by the privileged few at huge expense. Along with the high purchase price comes a significant ongoing cost associated with the yacht’s upkeep, including mooring fees, maintenance, insurance and guardinage.
Yacht fractions not only substantially reduces the initial financial outlay; it also offers equivalent savings in the ongoing operational expenses. Yet it doesn’t compromise the owner’s use, size or calibre of the yacht or expose them to all of the risks or hassles that accompany ownership of the entire yacht.
One simply pays for the time one is on board and somebody else pays when somebody else is on board. This is a very modern approach to better asset management, commonly referred to as the sharing society.
Because an independent professional generally handles the management of the yacht, the fractional owners are free to enjoy themselves and are removed from the detailed management issues. Each owner is free to use his/her share of the asset according to the terms of each actual syndicate agreement.
A very common misconception about fractional ownership is that it is a form of timeshare by a different name. This is not the case. With timeshare one does not own a share in an asset, simply the right to use that asset for a set period of time. When that time expires, one is left with nothing. With fractional ownership, one owns the asset and receives title papers reflecting that ownership. If one subsequently desires to sell, one can do so.
No more waiting for that elusive dream. Through fractional syndication one can capture the moment sooner and enjoy yacht ownership without having to meet the full financial outlay attributed to the outright purchase of a yacht.